Exhibit 4(a) |
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1ST FRANKLIN FINANCIAL CORPORATION |
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U.S. BANK NATIONAL ASSOCIATION, Trustee |
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________________________ |
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FORM OF INDENTURE |
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_________________________ |
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TABLE OF CONTENTS
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ARTICLE 1 | DEFINITIONS AND INCORPORATION BY REFERENCE | 1 | |
Section 1.01. | Definitions | 1 | |
Section 1.02. | Other Definitions | 2 | |
Section 1.03. | Incorporation by Reference of Trust Indenture Act | 2 | |
Section 1.04. | Rules of Construction | 2 | |
ARTICLE 2 | THE SECURITIES | 3 | |
Section 2.01. | Amount Issuable; Series; Terms | 3 | |
Section 2.02. | Form and Dating | 3 | |
Section 2.03. | Execution | 4 | |
Section 2.04. | Registrar and Paying Agent | 4 | |
Section 2.05. | Paying Agent to Hold Money in Trust | 4 | |
Section 2.06. | Security Holder Lists | 4 | |
Section 2.07. | Transfer and Exchange | 4 | |
Section 2.08. | Replacement Securities | 4 | |
Section 2.09. | Outstanding Securities | 5 | |
Section 2.10. | Treasury Securities | 5 | |
Section 2.11. | Temporary Securities | 5 | |
Section 2.12. | Cancellation | 5 | |
ARTICLE 3 | REDEMPTION | 5 | |
Section 3.01. | Notices to Trustee | 5 | |
Section 3.02. | Selection of Securities to be Redeemed | 5 | |
Section 3.03. | Notice of Redemption | 6 | |
Section 3.04. | Effect of Notice of Redemption | 6 | |
Section 3.05. | Deposit of Redemption Price | 6 | |
Section 3.06. | Securities Redeemed in Part | 6 | |
Section 3.07. | Redemption if Balance Falls Below $1.00 | 6 | |
Section 3.08. | Application | 7 | |
ARTICLE 4 | COVENANTS | 7 | |
Section 4.01. | Payment of Securities | 7 | |
Section 4.02. | SEC Rights | 7 | |
Section 4.03. | Compliance Certificate | 7 | |
ARTICLE 5 | SUCCESSORS | 7 | |
Section 5.01. | When Company May Merge, etc | 7 | |
ARTICLE 6 | DEFAULTS AND REMEDIES | 8 | |
Section 6.01. | Events of Default | 8 | |
Section 6.02. | Acceleration | 8 | |
Section 6.03. | Other Remedies | 9 | |
Section 6.04. | Waiver of Past Defaults | 9 | |
Section 6.05. | Control by Majority | 9 | |
Section 6.06. | Limitation on Suits | 9 | |
Section 6.07. | Rights of Holders to Receive Payment | 10 | |
Section 6.08. | Collection Suit by Trustee | 10 | |
Section 6.09. | Trustee May File Proofs of Claim | 10 | |
Section 6.10. | Priorities | 10 | |
Section 6.11. | Undertaking for Costs | 10 | |
ARTICLE 7 | TRUSTEE | 11 | |
Section 7.01. | Duties of Trustee | 11 | |
Section 7.02. | Rights of Trustee | 12 | |
Section 7.03. | Individual Rights of Trustee | 12 | |
Section 7.04. | Trustee’s Disclaimer | 12 | |
Section 7.05. | Notice of Defaults | 12 | |
Section 7.06. | Reports by Trustee to Holders | 12 | |
Section 7.07. | Compensation and Indemnity | 12 | |
Section 7.08. | Replacement of Trustee | 13 | |
Section 7.09. | Successor Trustee by Merger, etc | 14 | |
Section 7.10. | Eligibility; Disqualification | 14 | |
Section 7.11. | Preferential Collection of Claims Against Company | 14 | |
ARTICLE 8 | DISCHARGE OF INDENTURE | 14 | |
Section 8.01. | Termination of Company’s Obligations | 14 | |
Section 8.02. | Application of Trust Money | 15 | |
Section 8.03. | Repayment to Company | 15 | |
ARTICLE 9 | AMENDMENTS | 15 | |
Section 9.01. | Without Consent of Holders | 15 | |
Section 9.02. | With Consent of Holders | 15 | |
Section 9.03. | Compliance with Trust Indenture Act | 16 | |
Section 9.04. | Revocation and Effect of Consents | 16 | |
Section 9.05. | Notation on or Exchange of Securities | 16 | |
Section 9.06. | Trustee Protected | 16 | |
ARTICLE 10 | MISCELLANEOUS | 16 | |
Section 10.01. | Trust Indenture Act Controls | 16 | |
Section 10.02. | Notices | 16 | |
Section 10.03. | Communication by Holders with Other Holders | 17 | |
Section 10.04. | Certificate and Opinion as to Conditions Precedent | 17 | |
Section 10.05. | Statements Required in Certificate or Opinion | 17 | |
Section 10.06. | Rules by Trustee and Agents | 18 | |
Section 10.07. | Legal Holidays | 18 | |
Section 10.08. | No Recourse Against Others | 18 | |
Section 10.09. | Duplicate Originals | 18 | |
Section 10.10. | Variable Provisions | 18 | |
Section 10.11. | Governing Law | 18 | |
EXHIBIT A FORM OF SECURITY | A-1 |
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CROSS-REFERENCE TABLE
TIA Section | Indenture Section |
310 (a)(1) | 7.10 |
(a)(2) | 7.10 |
(a)(3) | N.A. |
(a)(4) | N.A. |
(b) | 7.08; 7.10; 11.02 |
(c) | N.A. |
311 (a) | 7.11 |
(b) | 7.11 |
(c) | N.A. |
312 (a) | 2.06 |
(b) | 11.03 |
(c) | 11.03 |
313 (a) | 7.06 |
(b)(1) | N.A. |
(b)(2) | 7.06 |
(c) | 11.02 |
(d) | 7.06 |
314 (a) | 4.02; 11.02 |
(b) | N.A. |
(c)(1) | 11.04 |
(c)(2) | 11.04 |
(c)(3) | N.A. |
(d) | N.A. |
(e) | 11.05 |
(f) | N.A. |
315 (a) | 7.01(b) |
(b) | 7.05; 11.02 |
(c) | 7.01(a) |
(d) | 7.01(c) |
(e) | 6.11 |
316 (a)(last sentence) | 2.10 |
(a)(1)(A) | 6.05 |
(a)(1)(B) | 6.04 |
(a)(2) | N.A. |
(b) | 6.07 |
317 (a)(1) | 6.08 |
(a)(2) | 6.09 |
(b) | 2.05 |
318 (a) | 11.01 |
N.A. means not applicable |
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Section 1.3.
Term | Defined in Section |
“Bankruptcy” | 6.01 |
“Custodian” | 6.01 |
“Event of Default” | 6.01 |
“Interest Payment Date” | 2.01 |
“Legal Holiday” | 10.07 |
“Officer” | 10.10 |
“Paying Agent” | 2.04 |
“Registrar” | 2.04 |
“Regular Record Date” | 2.01 |
“Stated Maturity” | 2.01 |
“U.S. Government Obligations” | 8.01 |
Dated: As of December 26, 2007 1st FRANKLIN FINANCIAL CORPORATION |
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By: _____________________________ |
Name: _________________________ |
Title: _________________________ |
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Attest: |
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_____________________________ |
(SEAL) |
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[Signatures Continued On Following Page] |
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Dated: As of December 26, 2007 U.S. BANK NATIONAL ASSOCIATION |
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By: _____________________________ |
Name: _________________________ |
Title: _________________________ |
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Attest: |
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_____________________________ |
(SEAL) |
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EXHIBIT A |
FORM OF SECURITY |
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FORM OF SENIOR DEMAND NOTE | ||
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SENIOR DEMAND NOTE | ||
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No. ____________ | Toccoa, Georgia _____________,____ | |
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On Demand, for value received, 1st FRANKLIN FINANCIAL CORPORATION promises to pay ______________________________________ at the home office of 1st Franklin Financial Corporation, 213 East Tugalo Street, Toccoa, Georgia, the principal amount of this Note, as represented from time to time on the books and records of 1st Franklin Financial Corporation, and to pay interest thereon, at the applicable rate, compounded daily. 1st Franklin Financial Corporation can call this Note for redemption at any time without penalty. | ||
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This Note is nonnegotiable and is transferable only on the books of 1st Franklin Financial Corporation. | ||
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By: _________________________________ Chairman and Chief Executive Officer | By: _________________________________ Assistant Treasurer | |
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THIS SECURITY IS NOT A BANK DEPOSIT OR SIMILAR OBLIGATION AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR THE SECURITIES INVESTOR PROTECTION CORPORATION OR ANY OTHER FEDERAL OR STATE AGENCY. | ||
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